A multi-scenario analysis to improve layout efficiency

Abstract

Logistics costs represent a large portion of overall costs. Companies in peripheral countries need to be additionally careful in streamlining them if they want to maintain their competitivity. This research is focussed on a plant belonging to an aerospace component supplier, and its purpose is to reduce the layout costs in one of its warehouses. Data was collected using documentation, archival records, informal interviews, and direct and participant observation. From 66 initial scenarios based on layout decisions, storage assignment policies and alternative picking routes, 44 were compared as these are the ones that fit the company reality. Findings showed that travelling distance could be reduced when the allocation of items in shelves follow their picking frequency and when Class-based storage with return routing policies is used. In parallel, it does not impact in a relevant way process time and the quality of the picking.